#THE RESERVE BANK (TRANSFER TO PUBLIC OWNERSHIP) ACT, I948 
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##ARRANGEMENT OF SECTIONS 
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SECTIONS 
1. Short title. 
2. Definitions. 
3. Transfer of Bank shares 
4. Vacation of office by existing office bearers. 
5. Interim arrangements. 
6. Rule-making power. 
7. *[Repealed.]*
*THE SCHEDULE [Repealed.]*



#THE RESERVE BANK (TRANSFER TO PUBLIC OWNERSHIP) ACT, I948 

##ACT NO. 62 OF 1948 

[23rd September, 1948.] 

An Act to bring the share capital of the Reserve Bank of India into public ownership and to make 
  consequential amendments in the Reserve Bank of India Act, 1934. 

  WHEREAS  it  is  expedient  to  bring  the  share  capital  of  the  Reserve  Bank  of  India  into  public 
ownership,  to  make  provisions  with  respect  to  the  relations  between  the  Central  Government  and  the 
Bank and to make consequential amendments in the Reserve Bank of India Act, 1934; 

  It is hereby enacted as follows:— 

1. **Short title.**—This Act may be called the Reserve Bank (Transfer to Public Ownership) Act, 1948. 

2. **Definitions.**—In this Act,— 

  (a) “appointed  day”  means  such  day  as  the  Central  Government  may,  by  notification  in  the 
Official Gazette, appoint; 

  (b) “Bank” means the Reserve Bank of India as constituted by the principal Act; and 

  (c) “principal Act” means the Reserve Bank of India Act, 1934. 

3. **Transfer of Bank shares.**—(1) On the appointed day— 

  (a) all shares in the capital of the Bank shall by virtue of this Act be deemed to be transferred free 
of all trusts, liabilities and encumbrances to the Central Government, and 

  (b) as  full  compensation  there  for,  the  Central  Government  shall  issue  to  every  person  who, 
immediately  before  the  appointed  day,  is  registered  as  the  holder  of  any  such  shares,  an  amount 
calculated at the rate of one hundred and eighteen rupees and ten annas per share, in promissory notes 
of the Central Government bearing interest at the rate of three per centum per annum repayable at par 
on such date as may be specified in this behalf by the Central Government: 

  Provided that where the amount so calculated is not an exact multiple of one hundred rupees the 
amount in excess of the nearest lower multiple of one hundred rupees shall be paid by cheque drawn 
on the Bank: 

  Provided further hat in respect of any share obtained at par from the Central Government by any 
Director  of  the  Bank  in  pursuance  of  sub-section  (8)  of  section  4  of  the  principal  Act  as  in  force 
immediately before the appointed day, the said amount shall be calculated at the rate of one hundred 
rupees per share. 

(2) Notwithstanding the transfer of shares effected by this section any shareholder who, immediately 
before the appointed day, is entitled to payment of dividend on the shares held by him shall be entitled to 
receive from the Bank— 

  (a) all dividends accruing due on his shares in respect of the year ending on the 30th day of June, 
1948, or any preceding year remaining unpaid on the appointed day; 

  (b) dividends calculated at the rate of four rupees  per annum per share in respect of the period 
from the 1st day of July, 1948, to the appointed day. 

4. **Vacation of office by existing office bearers.**—On the  appointed  day  any  person  who 
immediately  before  that  day  was  holding  office  as  a  Director  of  the  Central  Board  otherwise  than  as 
Governor or Deputy Governor or as a member of a Local Board of the Bank shall vacate his office, and 
the  Central  Board  and  the  Local  Boards  of  the  Bank  shall  thereafter  be  constituted  in  the  manner 
prescribed by sections 8 and 9 of the principal Act as amended by this Act. 

5. **Interim arrangements.**—Pending  the  constitution  of  the  Central  Board  under  section  8  of  the 
principal Act as amended by this Act, the Governor of the Bank, or in his absence a Deputy Governor of 
the Bank duly nominated by him in this behalf, may, subject to such restrictions and conditions as may 
from time to time be imposed by the Central Government, exercise all powers, and do all acts and things 
which may be exercised or done by the Bank. 

6. **Rule-making power.**—(1) The Central Government may, by notification in the Official Gazette, 
make rules for the purpose of giving effect to the objects of this Act. 

(2) In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 
provide— 

  (a) for the manner in which and the authority by which compensation shall be paid under section 
3; and 

  (b) for the determination of persons to whom compensation is so payable. 

[^1][(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after 
it is made, before each House of Parliament, while it is in session, for a total period of thirty days which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 
session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
making any modification in the rule or both houses agree that the rule should not be made, the rule shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule.] 

7. *[Amendment to Act 2 of 1934.]—Rep. by the Repealing and Amending Act,* 1950 (35 of 1950), s. 2 
*and the First Schedule (w.e.f.* 10-4-1950). 

*[THE SCHEDULE.]—Rep. by s. 2 and the First Schedule, ibid. (w.e.f. 10-4-1950). 



[^1]. Added by Act 4 of 2005, s. 2 and the Schedule (w.e.f.* 11-1-2005).